Exam 21: Title and Risk of Loss

Paramount Publishing,Inc.,delivers fifty cases of an assortment of books to Quicksilver Delivery,Inc.,without passage of title to deliver the goods to Readmore Bookstore. This is

If a sale involves crops that are to be harvested within twelve months,identification takes place when the seeds for the crops are harvested.

Identification,risk of loss,and insurable interest are all concepts that are involved in determining the rights and liabilities of parties to a contract.

If an owner holds fungible goods as anowner in common,he or she can pass title without actually separating the goods.

When a document of title is required,title passes to a buyer when and where the document is delivered.

A buyer has an insurable interest in identified goods only if he or she has title to the goods.

A contract between Fresh Fruit Corporation and Green Grocer,Inc.,re-quires Fresh Fruit to deliver goods to Green Grocer's place of business. This is

Varoom Motors,Inc.,sells Weber an Xtrem-Sport motorcycle. The cycle is held by Yeoman's Warehouse for delivery to Weber at Yeoman's location. Risk of loss passes to Weber when she receives

Growers Mart buys one hundred cases of berries from Hilltop Farms. The parties agree that the berries will be transported "F.O.B. Hilltop Farms" via Refrigerated Trucking Company. Refrigerated's truck and the berries are lost in a fire following an accident. The loss of the berries is suffered by

In the following situations,two parties claim the same goods. Who is most likely to prevail in each circumstance? Explain. (a)Olan steals Phil's television set and sells it to Quincy,an innocent purchaser,for value. Phil learns Quincy has the set and demands its return. (b)Riley takes his television set for repair to Slick,a merchant who sells new and used television sets. By accident,one of Slick's employees sells the set to Tuna,an innocent purchaser-customer,who takes possession. Riley wants his set back from Tuna.

Household Appliance Corporation sells Ideal-brand vacuum cleaners to Jolly Discount Stores and other retailers. Household Appliance will have an insurable in-ter-est in the vacuums as long as

Quality Computer Company agrees to sell one hundred servers to Social Media Networks,Inc. The servers,which Social Media Networks ex-pressly requires to have certain amounts of memory,are to be shipped "F.O.B. Social Media Networks distribution center in Memphis,TN." When the servers arrive,Social Media Networks rejects them and informs Quality Computer,claiming that the servers do not conform to Social Media Networks' memory requirement. A few hours later,the servers are destroyed in a fire at Social Media Networks' distribution center. Will Quality Computer succeed in a suit against Social Media Networks for the cost of the goods?

Even if goods are not identified to the contract,the title and risk of loss can still pass from the seller to the buyer.

Effortless Workouts,Inc.,deliversa quantity of treadmillsand other exercise equipment to Forklift Storage Company,which acknowledges possession of the goods by a warehouse receipt. Forklift is

If a lessor is a merchant,the risk of loss passes to a lessee when the lessee takes physical possession of the goods.

Corn that fills County Grain Co-op's silo is fungible if the corn is

Identification takes place when specific goods are designated as the subject matter of a sales or lease contract.

Ralph,a representative for Statewide Truck & Transport Company,delivers a receipt issued by Thelma,the owner of United Storage Warehouse,for goods held in the warehouse to Vicky,the buyer for Wattage,Inc. This is

Quest Outdoor Store orders RiverRun-brand kayaks from Sports Merchandise,Inc. Sports Merchandisemistakenly ships kayaks of the wrong size,which Quest rejects and returns via Trans-State Shipping Company. During the return,the kayaks are lost. The loss is suffered by

Gas & Wood Stove Shop orders Hearthwarm-brand stoves from Independent Dealer,Inc. (IDI),a merchant who deals in such products. The parties agree that IDI will keep the goods for Gas & Wood's pickup. While the stoves are in IDI's possession,risk of loss is held by